1 Jul 2010 16:32

UAC ready to acquire Aviacor, but not its debts

ZHUKOVSKY. July 1 (Interfax) - United Aircraft Corporation (UAC) continues talks with Russian Machines on acquisition of Aviacor (Samara), but UAC is concerned by the company's "very large debts," UAC President Alexei Fyodorov told journalists on Thursday.

"If we reach agreement with the owner - Russian Machines - on the parameters of the deal, we may bring the plant into the UAC group," he said, adding that UAC would "not want to take the debts."

UAC is interested in acquiring Aviacor since it has set up production of the Russian-Ukrainian An-140, a regional aircraft. "Aside from the An-140, we don't have a turboprop regional plane. There is a need for that plane," he said.

Aviacor is Russian Machines' only aviation asset. It manufactures, maintains and services aircraft in the Tu-154 and an-140 families.

Russian Machines began talks with UAC on sale of a stake in Aviacor last fall. In November the UAC board laid out the terms for the potential acquisition of Aviacor: UAC would exchange 0.2% of its shares for a 75% stake in Aviacor, UAC Vice President Vasily Prutkovsky said. Aviacor was to have joined UAC roughly in the first quarter.

A source close to UAC told Interfax previously that the stake would be acquired by a UAC subsidiary, Irkut . Irkut would use UAC shares it holds as treasury stock. The source said the 75% Aviacor stake was worth 300 million-400 million rubles.

Russian Machines plans to retain a 25% stake in Aviacor.